Hero Honda’s Profit Drops by 20%
Hero Honda Motors Limited, India's largest two-wheeler producer, reported its biggest fall in every quarter profit in more than 3 years as raw materials rates eroded gains from advanced sales. Hero Honda MD Pawan Munjal said- "I do foresee margins to be under pressure in short term, "For the last few months, the industry has faced many issues of limited supply of rising input costs & components." Bike Manufacturer said it spent 44% more on rubber, steel & other materials in the last quarter such as economical growth in China & Indian market improved commodity prices. Raised prices of its bikes by as much as Rs 1500 in December month. Fight may hike for the Delhi based manufacturer as Honda Co works to expand its completely owned Indian unit after selling its 26% stake in Hero Honda. Gaurant Dadwal said Increasing commodity prices have plainly dented this quarter's profit," Mumbai analyst at Jaypee Services Limited., who has a 'sell' rating on the stock. "With their rate growth in Dec it is possible that they will be able to regain their margins."
Hero Honda Launches New Karizma R
Hero Honda India has unveiled the 2011 model of New Hero Honda Karizma R which features new, clear lens turn indicators, graphics, black theme for engine and redesigned engine cowl. Other than these modifications 2011 New Karizma R is similar in conditions of engine power and technology. New Hero Honda Karizma R looks very modish with black mag alloy wheel, double light tailpiece, new fairing, clear lens front indicators, stepped up seat, silencer unit and panel shapes. The fairing isn't a complete which is seen on sport motorcycles but it gels very well with overall design of the bike. Hero Honda Karizma R's engine is same 223cc which develops maximum power of 17bhp. Hero honda is currently selling both Karizma ZMR and Karizma R in India and they have no plans to discontinue the Karizma R as it is selling in very good numbers and is very popular choice among young buyers.
Hero Honda Executes Licensing Agreement
Hero Group To Make 3-Wheelers
After their split from Japan based Honda Motors, Hero Group is looking to go into in previously untouched territories. As reported earlier, the corporation started exploring the idea of making Diesel bikes for Indian market. Now, according to company’s official statement, Hero Group is scheduling to enter 3-wheeler business soon. According to company sources, Hero Group may come up with 3-wheeler passenger carrier (auto-rickshaw) first, followed by a commercial goods mover.
The plan was discussed with the vendors in Delhi, according to the same sources. “The group is examining the option of re-engineering its bigger two-wheeler engines to make three-wheelers. We have been asked to prepare for the admission into three-wheelers and other segments,” said a Delhi-based vendor who attended the meeting. Executives from over 50 companies, which supply crucial parts to Hero Honda, took part. The Hero group will start implementing these plans once it signs a definitive agreement with Honda Motor Company. The Hero Honda spokesperson said there were no immediate plans to enter the three-wheeler segment. Three-wheelers are referred to as auto-rickshaws in India. “Under the proposed new arrangement, several opportunities may exist in terms of new segments and product categories, but at present there is no such plan on the anvil,” the Hero Honda spokesperson said.
Hero Honda Plans 400cc Diesel Bike
Hero Honda is planning to explore diesel powered bikes by creating a new segment. Hero Honda is in talks with a Chennai based firm and an agreement is expected to be signed in May, 2011. The diesel powered 400cc Hero Honda bikes will be launched early next year, priced aggressively. The Hero Group is planing to assemble the bikes at its Dharuhera facility, where it is also developing its R&D facility. The Hero Honda sees a potential of 1.5 lakh units in the 1st year itself, which is impressive.
Hero Honda Crosses Fifty Lakh Units
New Delhi, January 2, 2011: Hero Honda Motors Ltd the world's largest two wheeler manufacturer continued its dominance of two-wheeler market by recording sales of 501,111 units in the month of December’10, a surge of 33% over the corresponding month in '09. The year 2010 also marked the best ever calendar year for the company with cumulative sales of over 5 million units, a growth of 16.4% over the calendar year 2009. During the year, the company also witnessed 5 lakh plus monthly sales in October and December and also recorded 4 lakh plus monthly sales for eight consecutive months.
The Q3 of FY’11 also marked the most successful quarter for Hero Honda, with sales of 14,28,030 units, up by 29% over the corresponding quarter in FY’10, when the company had sold 11,11,372 units. Commenting on the performance, Mr. Anil Dua, Sr. VP (Marketing & Sales), Hero Honda Motors Ltd, said “2010 has been an outstanding year for Hero Honda. The year 2010 not only witnessed sales of over 5 million units but the company also consistently raised the bar and created new records. A double digit growth rate despite the large base of previous year is the reflection of confidence and trust that our customers and business partners repose in us. For the coming year, we further intend to solidify our leadership by launching new products combined with customer-focused marketing programs.
The year 2010 saw an impressive addition to an already strong product portfolio of HHML, with company launching a mix of new models, variants and refreshes. Earlier this financial year, the refreshed models of Glamour and Glamour FI were introduced to strengthen company’s leadership in the deluxe segment. Besides the launch of the new Super Splendor and Hunk, the festive season also witnessed the launch of a new bike from Hero Honda, the Splendor Pro. Splendor Pro has brought in the biggest-ever change in Splendor since its launch. It comes with APDV engine with Advanced Pro-Series Digital Variable Ignition System. Yet another attraction has been the launch of Passion Pro Commonwealth Games Limited Edition. The bike was designed as a collector’s item in order to celebrate Hero Honda’s association with the Commonwealth Games Delhi 2010 and spread the flavor of games amongst the sports-loving youth. During the year, Hero Honda further reinforced its association with sporting events, through its role as a Partner of the Commonwealth Games and Presenting Partner of the Queen’s Baton Relay for the Commonwealth Games 2010. HHML also successfully supported yet another highly acknowledged edition of the Indian Open Golf tournament.
Hero Honda and Bajaj bikes become expensive from tomorrow
The countries first and second largest two wheeler manufacture, Hero Honda and Bajaj Auto, bike prices will be increased from New year that is 1st January, 2010. Already both the companies have announced the increment for them bikes due to rising cost of various raw materials such as steel and rubber. After announcement of separation between Hero-Honda, this is the first time when it announced new prices. But the company claims that it will not effect the sales growth of two-wheelers. At present, either companies are recording overwhelming growth in sales.
Hero Honda has announced the hiked prices for the two wheelers and it starts from Rs. 500 to 1500. The increased bike prices will effect the ex-showroom price of Hero Honda CD Dawn to Hero Honda Karizma-the top model in it's portfolio. On the other hand, Bajaj bikes will also available with hiked prices. The company has announced to add up to Rs 1000 at Bajaj Two wheelers. The ex-showroom prices will apply from its entry-level Bajaj Platina to Bajaj Pulsar 220 top end model. Now, the bike lovers have to pay extra buck for their favourite vehicles. Here it is expected that other two-wheeler companies will also join the price hike race. Other two-wheeler makers like TVS, Yamaha, Suzuki and Mahindra are also expected to hike the prices at the end of February 2010.
New version of Hero Honda Karizma R ready for launch
Hero Honda, World's largest two wheeler manufacturer and provider, is reported to launch a new version of Hero Honda Karizma R. This 2011 variation of the bike might be launched in the month of January 2011. According to media updates, it may be the last upgraded version of this popular bike after the split between Hero Honda. Hero Honda Karizma is the most popular entry-level sports bike in India that has been loaded with a SOHC, 4 stroke, single cylinder mill with a 223cc displacement. It is available in Sports Red, Moon Yellow and Black with Red Alloys, Force Silver and Vibrant Blue colour.
The 2011 version of Hero Honda Karizma R is speculated to be replaced by new colour paint, Clear lens turn indicators, new engine guard attached with some small circular orange reflective material and fashionable speedo meter. The expected changes look motivated from Hero Honda Karizma ZMR PGM Fi which is the muscular bodied variant of this bike. There is no changes in the engine of new Hero Honda Karizma R but it might be fuel efficient and high-quality performer than older one. The new alternative of the bike looks very attractive and sporty. Karizma R churns is powered by 223cc engine which generates maximum power of 17 bhp at 7000 rpm with maximum torque of 18.35 Nm at 6000 rpm. In terms of power and appearance, it is the major competitor of Bajaj Pulsar 220 and Kawasaki Ninja 250R in the segment. The company has not announced the price of this new version but it is estimated that the new changes will cost more than the existing one.
Hero group plans to raise exports
Hero Honda, a partnership between Honda Group of Japan and Munjal Group of India, has come to an end and is to sign a final dissolvement agreement soon after four weeks. With this departion of two companies, the Hero Honda Group discloses to increase exports with its bike and scooter segment. The company currently is selling its bikes in countries such as Nepal, Bhutan, Bangladesh and Myanmar and is planning to further extend itself in countries like Latin America, Africa, East Europe and Asia.
After the split of Hero Honda, the first vendors' conference took place recently in which executives from key suppliers like those of Motherson Sumi, Sunbeam Auto, Minda Industries, Rico Auto, Falcon Tyres, Lumax Industries, Sandhar Technologies, Omax, Excide Batteries, Sriram Pistons and MRF Tyres participated. As per official statements of the Munjal group, it is said that the Hero group is to work hard so as to compete with its previous partner Honda and to spread its market internationally. The company has good quantity of popular products including Hero Honda Hunk, Hero Honda Glamour, Hero Honda Splendor+, Hero Honda Passion Pro, etc. The dissolvement took place with an agreement of Honda selling 26% stakes to India's Munjal Group. With this the Hero group is to acquire a total of 52% share of Hero Honda. The company with a view to maintain its prominent position in the market is planning to attain a target of 5.4 million units per year. Also it is said that the company is not to stop delivering its best selling models that are Hero Honda Passion and Hero Honda Splendor.
Hero Honda Passion and Splendor with a tag name of Hero Honda
As known that the Hero Honda is now dissolved, but the company's famous Hero Honda Splendor and Hero Honda Passion are not to get extinct but would continue to reach the domestic market same ways as earlier with a tag name of Hero Honda. As per an agreement between the two, the Munjal Group of India and the Honda Motors of Japan, Honda is still to assist the Hero group with technology. The agreement was signed in the year of 2004 and is to continue up to 2014. The current collection of the group comprises of Hero Honda Karizma, Hero Honda Glamour, Hero Honda CBZ Xtreme, etc. On Thursday, 16Th December both the companies arrived on a final decision with the dissolvement and another agreement is to be signed by both in a few days.
The dissolvement became a success with Honda selling its 26 percent of stakes to the Munjal group with a discount. The entry-level bikes of the company have been the most famous and favourite with its efficiency and low price tag and also have experienced tremendous achievement and inflated sales. Hero Honda Passion and Hero Honda Splendor are the key models of success of the ever shining company. Honda individually is sufficient enough with high technology and advanced features and its wholly owned subsidiary, Honda Motorcycles and Scooter India, is already experiencing good response with Indian customers. But absolutely the partition is to affect the Hero group which was completely dependent on the Honda's technology for its models.